3. FTSE Malaysia has insignificant impact on JII in short run. However in long run it negatively effecting JII. Negative relationship may
happen because Indonesia stock market is still following the regional market condition. If the crash happens in the abroad, it will trigger a
crash in Indonesia capital market as well. Another important point from this relationship is because a number of national investors are
lower than foreign investors. So that it causes the capital outflow to the foreign countries.
4. Gold price has negative impact on JII both in short and long run. The reason why gold negatively impacts on JII because gold can be chosen
as an alternative investment when the economic instability occurs. So that in the long run, investors prefer to gold as the investment
instrument.
B. Recommendation
Regarding to the study conclusions, the researcher submits recommendations for the advancement JII as follows:
1. Exchange rate is significantly impact on JII. Then, it is expected for the government as the decision maker to control the decent expectation
or confidence of society regarding the fluctuation of exchange rate. 2. The changing of oil price has also an impact on JII. In order to keep
with the changing of oil price, then the investors should be more aware of the latest price.
3. The effect of FTSE Malaysia as one of the regional stock market also important for JII. All related parties should be cautious on responding
to the other countries economic policy changing. 4. The movement of gold price should be the consideration for the
investors whenever they want to invest in the market.
REFERENCES
Andale. Statistics
how to.
December 16,
2016. http:www.statisticshowto.comunit-root accessed February 5, 2017.
Antonio, Muhammad Syafii, Hafidhoh, and Hilman Fauzi. The Islamic Capital Market Volatility: A Comparative Study Betweebn in Indonesia and
Malaysia. Buletin of Monetary, Economics, and Banking , 2013.
Arouri, Mohamed El Hedi, and Duc Khuong Nguyen. Oil Prices, Stock Markets and Portfolio Investment: Evidence from Sector Analysis in Europe over
the Last Decade. Hal France Journal Publication, 2010.
Arslanalp, Serkan, Wei Liao, Shi Piao, and Dulani Seneviratne. IMF Working Paper: Chinas Growing Influence on Asian Financia Market. 2006.
Bacha , Obiyathulla Ismath, and Abbas Mirakhor. Islamic Capital Market: A Comparative Approach.
Wiley, 2013. Baele, Lieven, Annalisa Ferrando, Elizaveta Krylova, and Cyril Monnet.
Measuring Financial Integration in the Euro Area. Working Paper Publication European Central Bank
, 2014. Barakat , Mahmoud Ramadan, Sara H Elgazzar, and Khaled M Hanafy. Impact
of Macroeconomic Variables on Stock Market: Evidence from Emerging Markets. International Journal of Economics and Finance , 2016.
Basuki, Agus Tri, and Nano Prawoto. Analisis Regresi dalam Penelitian Ekonomi Bisnis.
Jakarta: Rajagrafindo Persada, 2016. Baumeister, Christiane, and Lutz Killian. Forty Years of Oil Price Fluctuations:
Why the Price of Oil May Still Surprise Us. Journal of Economic Perspectives Vol 30 No 1 Winter
, 2014. Beik, Irfan Syauqi, and Sri Wulan Fatmawati . Pengaruh Indeks Harga Saham
Syariah Internasional dan Variabel Makro Ekonomi Terhadap Jakarta Islamic Index. Al Iqtishad: Vol, VI No.2, 2004: 156.
Berk, Islemi, and Berna Aydogan. Crude Oil Price Shocks and Stock Returns: Evidence from Turkish Stock Market under Global Liquidity Conditions.
EWI Working Paper Vol 1512 , 2012.
